InsiderEconomyNPLs in the Cyprus banking system down by €132 million in July

NPLs in the Cyprus banking system down by €132 million in July

Non- Performing Loans (NPLs) in the Cyprus banking system dropped by €132 million continuing their downward trajectory, assisted by disposals as well as the debt repayment moratorium in place since March until end-December, as part of the measures to tackle the impact of the coronavirus pandemic.

According to data released by the Central Bank of Cyprus (CBC) on Friday, total NPLs in end-July declined to €6.57 billion representing 22% of total loans compared with €6.7 bl in the previous month. From the beginning of the year, NPLs marked a drop of €2,4 bl, mainly attributed to the sale of an NPL portfolio with contractual value of €1,4 bl by the Bank of Cyprus (Helix 2) and a write down amounting to €0.5 bl by Hellenic Bank.

Furthermore, total accumulated provisions remained steady at 52.7% of total NPLs, amounting to €3.46 bl.

Total restructured loans at the end of July amounted to €4.22 bl, of which €3.04 bl continue to be classified as non-performing, according to the definition of the European Banking Authority.

Of the total NPLS, 50.3% or €3.3 bl are held by households and 44.3% or €2,9 billion are held by non-financial institutions, the CBC said. However, according to the CBC data, €2.43 bl or 83% of the total corporate NPLs are held by small and medium sized enterprises.
Total accumulated provisions for corporate NPLS amounted to 60%, with 61% for NPLs held by SMEs, while accumulated provisions for household NPLs amounted to 43%, the CBC added.


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